Hecla Mining Revenue Surges 52% as Earnings Shrink
Hecla Mining generated $342 million in free cash flow on 61.4% gross margins, yet earnings have shrunk for two consecutive quarters as costs rise faster than revenue. Insider selling and an undisclose
Hecla Mining Revenue Surges 52% as Earnings Shrink
NEW YORK, October 23 —
Hecla Mining Company (HL) generated $342 million in free cash flow on 61.4% gross margins, yet sequential earnings have slipped two quarters running and the stock has fallen to $14.11, nearly $7 below where a vice president sold $498,000 in shares in August. In September, the company simultaneously created new debt and modified security holder rights without disclosing terms.
- Revenue: $1.74 billion trailing, up 52.4% year-over-year; gross margin 61.4%; operating cash flow $734 million.
- EPS: $0.17 last quarter vs. $0.24 prior quarter; two consecutive estimate misses after two prior beats.
- Stock at $14.11; analyst consensus target ; VP Malone sold ~$498,000 at $20.76, $20.97 in August.
Below the Gross Line, the Story Frays
Hecla Mining produces silver, gold, lead, and zinc concentrates from operations including the Fire Creek Mine in Nevada, selling to custom smelters and metal traders across the US, Canada, Japan, Korea, and China. The 61.4% gross margin signals ore quality; the earnings trajectory signals something else entirely. Four quarters ago the company beat estimates by 31.6%, three quarters ago by 22.0%, a miner with pricing wind at its back. Then the beats turned to misses: $0.17 against a estimate last quarter, after $0.24 against the quarter before. Revenue grew 52.4% year-over-year yet per-share earnings are shrinking, which means costs are rising faster than the top line can absorb.
Four Material Items, No Disclosed Purpose
On September 18, Hecla filed an 8-K triggering four concurrent material items: a new definitive agreement, termination of a prior one, a new direct financial obligation, and a modification of security holder rights. That last trigger, Item 3.03, is rarely pulled without a capital structure change that affects what holders actually own. Hecla had $490 million in cash and only $20 million in reported debt at the time, suggesting the restructuring was not driven by distress. Its purpose remains undisclosed in the filing summary, the kind of opacity that complicates a clean read on an otherwise strong cash-flow story.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| HL | $9.5B | 13.7x | +9.0% |
| CDE | $14.3B | 7.5x | -25.6% |
| PAAS | $17.0B | 9.6x | +13.0% |
| AG | $7.5B | 15.3x | +17.8% |
| KGC | $26.9B | 8.5x | -5.3% |
| EXK | $2.3B | 7.4x | -5.4% |
The Signal the Consensus Target Requires
Patrick Shay Malone, VP of Sustainability, sold $498,000 in shares at $20.76, $20.97 on August 20, the only recorded transaction in the 90-day window, against zero insider purchases. The stock now sits at $14.11. Insider exits are not deterministic; Malone may have been following a planned disposition schedule. But the pattern accumulates: one executive selling near $21, no one buying near $14, two consecutive estimate misses, and an undisclosed balance sheet restructuring. The analyst consensus target of implies a re-rate is achievable if EPS recovers toward prior-quarter levels and the September transaction proves routine; investors can model the inputs at the DCF calculator. Run the free Hecla Mining Company deep-dive →
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Frequently Asked Questions
What happened with Hecla Mining earnings?
Hecla Mining's earnings have shrunk for two consecutive quarters despite revenue growing 52.4% year-over-year. Last quarter the company earned $0.17 per share versus $0.24 the quarter before, missing estimates both times as costs have risen faster than the top line can absorb.
Why did Hecla Mining stock fall?
The stock declined to $14.11 from highs near $21, following two consecutive earnings misses. VP Patrick Shay Malone sold $498,000 in shares at $20.76, $20.97 in August, and an undisclosed balance-sheet restructuring announced in September has added additional uncertainty.
What is Hecla Mining's free cash flow?
Hecla Mining generated $342 million in free cash flow on 61.4% gross margins. The company reported operating cash flow of $734 million for the trailing period.
What does Hecla Mining produce?
Hecla Mining produces silver, gold, lead, and zinc concentrates from operations including the Fire Creek Mine in Nevada. The company sells these concentrates to custom smelters and metal traders across the US, Canada, Japan, Korea, and China.
What triggered the September 18 filing?
On September 18, Hecla filed an 8-K with four concurrent material items. The filing included a new definitive agreement, termination of a prior one, a new direct financial obligation, and a modification of security holder rights, though the purpose remains undisclosed.
Hecla Mining grew trailing revenue 52% to $1.74 billion and generates $342 million in annual free cash flow, yet its stock sits at $14.11 — well below the $20.76–$20.97 at which a vice president sold $498,000 in shares two months ago. In September the company simultaneously entered a new debt agreement, terminated a prior one, and modified rights of security holders, a multi-item restructuring whose precise terms have not been detailed in the public filing summaries.